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In investing, it pays to focus on the downside. ‘The upside will take care of itself’, as fund manager Mark Sellers put it. Downside protection can be found in different types of value such as earnings power or a strong balance sheet.

If nothing else, a business is worth its liquidation value – the amount of cash shareholders would get if all the company’s assets were sold, and debts repaid. Any price you pay above that demands an increasing number of assumptions about the company’s future profitability as a going concern.

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ISelect has meandered down below your BUY price and has been there for a few days. I understand your logic regarding a waiting period before making recommendation changes but ISU has moved well down below your price and has been there for a while ...

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